Suppose that a country's post-trade consumption point lies outside of its production possibilities curve.As a result,the country
A) gains from trade
B) loses from trade
C) is not affected by trade
D) none of the above

Question

Quizplus · Accepted Answer

If a country's post-trade consumption point lies outside its production possibilities curve, it means that it can consume more goods than it can produce alone. Therefore, by engaging in trade and importing goods that it cannot produce efficiently, the country can gain from trade.

Suppose That a Country's Post-Trade Consumption Point Lies Outside of Its